Out-Law News 1 min. read

Government announces package of community benefits for new nuclear sites


Local communities in sites earmarked by the Government for the development of new nuclear power stations could receive financial benefits when the projects come online under plans drawn up by the Department of Energy and Climate Change (DECC).

The proposals could be worth up to £1,000 per MW generated over 40 years from when the new nuclear power stations begin operating, the Government said. Funding will be made available through the new business rates retention scheme to communities around the eight sites in England and Wales listed as appropriate for new nuclear in the Nuclear National Policy Statement if the plans are approved by Parliament.

Energy Minister Michael Fallon said that the scheme was designed to recognise the scale and duration of the impact of new nuclear power stations on the surrounding area and local communities.

"It is absolutely essential that we recognise the contributions of those communities that host major new energy projects," he said.

"This package is in the interests of local people, who will manage it to ensure long-term meaningful benefit to the community. It's proportionate to the scale and lifespan of new nuclear power stations and it builds on the major economic benefits they will bring in terms of jobs, investment and use of local services," he said.

Published in March, the Government's Nuclear Nation Policy Statement set out details of seven sites in England appropriate for the siting of new nuclear power stations. These were Hinkley Point, Sizewell, Oldbury, Sellafield, Bradwell, Heysham and Hartlepool. Benefits of equivalent financial value to those proposed by the Government for the English sites would be made available to an eighth site, at Wylfa in Wales, where the business rates retention scheme does not operate.

As proposed, benefits under the package would be delivered in two phases. Under the first phase, local authorities will be able to use the existing business rates retention scheme to keep 50% of the rates collected locally together with the growth on that share for up to 10 years. Local authorities will then receive an equivalent annual payment directly from central government for an additional 30 years, to account for the "scale and lifespan" of nuclear projects, with funding tailored to the needs of the community, DECC said.

Although business rate revenues and the equivalent annual payments will be made to local authorities, DECC said that it "fully expects" communities to be involved in deciding on how the money would be spent. The Government would provide "assistance and support" to enable local authorities to develop their spending plans with community involvement, DECC said.

Local communities would also benefit from the "investment, jobs and use of local services" resulting from a major new infrastructure project, in addition to any commitments made to communities directly by developers under Section 106 of the Town and Country Planning Act, DECC said.

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